CSR soars after rejecting takeover approach from rival

MORE than £300million was added to the value of microchip maker CSR after it said it had rebuffed a takeover approach from an American rival.

CSR shares shot up by a third following the news of the take over [MOMENT/GETTY]

CSR shares shot up by a third, up 205p to 780p, lifting its value to £1.2billion after it confirmed the move by Microchip Technology Inc.

It followed speculation that Microchip was considering a bid at 1100p, valuing the group at £1.8billion.

The FTSE 250 company said: “The price proposed by Microchip has been rejected and the board is considering its options for the company.”

Originally called Cambridge Silicon Radio, CSR designs and makes chips used in audio equipment, in-car entertainment and satnavs, and medical devices. Its chips are used in the best-selling Beats by Dr Dre headphones.

CSR’s Bluetooth Smart technology allows the wireless connection of household devices, a fast-growing area dubbed “the internet of things”. Under chief executive Joep van Beurden the group has been shifting away from traditional markets such as digital cameras and smartphones into more profitable areas.

There is a wave of M&A in the semiconductor space and premiums are going higher

Analysts at Liberum

CSR said there was no certainty of a formal bid. Under takeover rules Microchip has until September 25 to table an offer or walk away.

Founded in 1999 and floated in 2004, its shares peaked at 1512p in 2006 but fell as low as 154p in 2011. They recovered to 806p in March but had fallen back to 555p this month.

Arizona-based Microchip is listed on the Nasdaq index and is valued at nearly £6billion.

Analysts at Liberum said CSR had long been seen as a takeover target, adding: “There is a wave of M&A in the semiconductor space and premiums are going higher.”

Earlier this year another UK chip maker Wolfson Microelectronics agreed to a £278million takeover by Cirrus Logic of the US.